Shares of Emergent BioSolutions (EBS -0.97%) are sinking today, down 11.8% as of 11:27 a.m. ET. The decline came after the company announced its second-quarter financial results following the market close on Monday.
Emergent reported total Q2 revenue of $242.7 million, down 39% year over year. It posted a net loss of $56.4 million, or $1.13 per share, based on generally accepted accounting principles (GAAP). The company's adjusted net loss was $42.8 million, or $0.86 per share. The consensus estimate was for positive adjusted earnings of $0.37 per share.
The primary problem for Emergent BioSolutions remains its contract development and manufacturing organization (CDMO) business. In Q2 2021, the company's CDMO revenue totaled $190.9 million. In the recent quarter, Emergent actually reported negative CDMO revenue because of a reversal of previously recorded revenue related to its contract with Johnson & Johnson's Janssen unit.
Sales for Emergent's top-selling product line, opioid overdose therapy nasal naloxone, also fell 4% year over year to $101.6 million. This decline resulted from the launch of a generic rival in December 2021.
The only bright spot for Emergent in Q2 was its anthrax vaccines. Sales for these vaccines soared 86% year over year to $95.6 million thanks to the timing of deliveries to the U.S. government.
Emergent hopes to close on its planned acquisition of worldwide rights to Tembexa in the third quarter of 2022. Tembexa is an oral antiviral therapy that's used to treat smallpox and monkeypox.
The company also expects the U.S. government will soon exercise its next option to buy more doses of ACAM2000. The smallpox vaccine can also be used to vaccinate against monkeypox, although it hasn't been approved for the indication.